Econ 202: Exam 1 Correct Solutions

EXAM 2 Review Biology Questions
October 11, 2019
Graeter’s Grows Through Good Management
October 13, 2019

Econ 202: Exam 1 Solutions

Question 1

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The supply curve shows the relationship between:

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Question 2

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An improvement in production technology will:

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Question 3

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Camille’s Creations and Julia’s Jewels both sell beads in a competitive market. If at the market price of $5, both are running out of beads to sell (they can’t keep up with the quantity demanded at that price), then we would expect both Camille’s and Julia’s to:

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Question 4

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Because of unseasonably cold weather, the supply of oranges has substantially decreased. This statement indicates that:

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Question 5

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The location of the product supply curve depends on:

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Question 6

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Answer the next question(s) on the basis of the given supply and demand data for wheat:

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Refer to the above data. Equilibrium price will be:

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Question 7

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A firm’s supply curve is upsloping because:

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Question 8

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When the price of oil declines significantly, the price of gasoline also declines. The latter occurs because of a(n):

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Question 9

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Refer to the above diagram, which shows demand and supply conditions in the competitive market for product X. Given D0, if the supply curve moved from S0 to S1, then:

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Question 10

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Which of the following will not cause the demand for product K to change?

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Question 11

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Assume in a competitive market that price is initially below the equilibrium level. We can predict that price will:

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Question 12

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An increase in the price of a product will reduce the amount of it purchased because:

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Question 13

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The quantity demanded of a product increases as its price declines because the:

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Question 14

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If X is a normal good, a rise in money income will shift the:

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Question 15

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College students living off-campus frequently consume large amounts of ramen noodles and boxed macaroni and cheese. When they finish school and start their careers, their consumption of both goods frequently declines. This suggests that ramen noodles and boxed macaroni and cheese are:

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Question 16

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Refer to the above diagram. If price falls from P1 to P2, total revenue will become area(s):

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Question 17

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Which of the following goods (with their respective income elasticity coefficients in parentheses) will most likely suffer a decline in demand during a recession?

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Question 18

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 Picture

The above diagram shows two product supply curves. It indicates that:

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Question 19

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A perfectly inelastic demand schedule:

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Question 20

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Assume that a 4 percent increase in income in the economy produces an 8 percent increase in the quantity demanded of good X. The coefficient of income elasticity of demand is:

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Question 21

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If the supply of a product is inelastic, the price elasticity coefficient of supply is:

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Question 22

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The demand for a product is inelastic with respect to price if:

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Question 23

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The price elasticity of demand for widgets is 0.80. Assuming no change in the demand curve for widgets, a 16 percent increase in sales implies a:

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Question 24

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The elasticity of demand for a product is likely to be greater:

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Question 25

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Refer to the above diagrams. The case of a normal good is represented by figure(s):

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Question 26

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If quantity demanded is completely unresponsive to price changes, demand is:

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Question 27

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Suppose that when your income increases from $28,000 to $30,000 per year, your purchases of X increase from 4 to 5 units because of that income increase. Thus:

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Question 28

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The elasticity of supply of product X is unitary if the price of X rises by:

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Question 29

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We would expect:

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Question 30

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Refer to the above information and assume the stadium capacity is 5,000. If the Mudhens’ management charges $7 per ticket:

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Question 31

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A demand curve which is parallel to the vertical axis is:

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Question 32

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Suppose the supply of product X is perfectly inelastic. If there is an increase in the demand for this product, equilibrium price:

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Question 33

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The demand for autos is likely to be:

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Question 34

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 Picture

Refer to the above diagram. If price falls from P1 to P2, total revenue will become area(s):

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Question 35

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 Picture

The above diagram shows two product supply curves. It indicates that:

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Question 36

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Answer the next question(s) on the basis of the following total utility data for products L and M. Assume that the prices of L and M are $3 and $4 respectively and that the consumer’s income is $18.

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Refer to the above data. How many units of the two products will the consumer purchase?

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Question 37

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The marginal utility of the last unit of apples consumed is 12 and the marginal utility of the last unit of bananas consumed is 8. What set of prices for apples and bananas, respectively, would be consistent with consumer equilibrium?

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Question 38

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Answer the next question(s) on the basis of the following total utility data for products L and M. Assume that the prices of L and M are $3 and $4 respectively and that the consumer’s income is $18.

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Refer to the above data. What level of total utility does the consumer realize in equilibrium?

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Question 39

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The law of diminishing marginal utility states that:

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Question 40

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Answer the next question(s) on the basis of the following marginal utility data for products X and Y. Assume that the prices of X and Y are $4 and $2 respectively and that the consumer’s income is $18.

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Refer to the above data. What quantities of X and Y should be purchased to maximize utility?

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Question 41

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Utility:

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Question 42

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Refer to the above data. The value for X is:

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Question 43

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Answer the next question(s) on the basis of the following two schedules which show the amounts of additional satisfaction (marginal utility) which a consumer would get from successive quantities of products J and K.

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Refer to the above data. If the consumer has a money income of $52 and the prices of J and K are $8 and $4 respectively, the consumer will maximize her utility by purchasing:

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Question 44

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The theory of consumer behavior assumes that:

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Question 45

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Answer the next question(s) on the basis of the following total utility data for products L and M. Assume that the prices of L and M are $3 and $4 respectively and that the consumer’s income is $18.

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Refer to the above data. What level of total utility does the consumer realize in equilibrium?

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Question 46

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Noncash gifts:

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Question 47

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Which of the following has been a significant factor in iPods replacing portable CD players?

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Question 48

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(Consider This) Newspapers dispensing devices seemingly “trust” people to take only a single paper but the devices actually rely on the law of:

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Question 49

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An increase in the price of product A will:

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Question 50

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If total utility is increasing, marginal utility:

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